ACTIVISION SET TO DEVELOP VIDEO GAMES BASED ON DREAMWORKS ANIMATION'S UPCOMING FEATURE FILM "SHREK 3"

Shrek 2 Ranked as #1 Best-Selling Children's Game in U.S. for Calendar 2004, According to NPD

Santa Monica, CA - February 2, 2005 - Following Shrek 2's ranking as the #1

children's video game in the U.S. for calendar 2004, Activision, Inc.

(Nasdaq: ATVI) and DreamWorks Animation (NYSE: DWA) jointly announced that

Activision will develop and publish video games based on DreamWorks

Animation's upcoming animated theatrical feature film, "Shrek 3," which is

scheduled for release in summer 2007.

"Activision is very excited to further expand its licensing agreement with

DreamWorks on the third installment in the blockbuster animated series,"

said Ron Doornink, CEO of Activision Publishing, Inc. "Shrek has proven to

be one of the most popular children's video game properties worldwide and we

expect to continue building on the success of the franchise with the release

of our upcoming game Shrek SuperSlam and future games."

In addition to "Shrek 2" and "Shrek 3," Activision also holds the exclusive

interactive rights to publish games based on DreamWorks' computer-animated

feature film "Shark Tale," as well as DreamWorks Animation's "Madagascar,"

which is scheduled to open in the U.S. on May 27, 2005 and "Over the Hedge,"

which is to be released in 2006.

"We're pleased that the year's #1 movie is also now the year's #1 kids

animated videogame," said Anne Globe, head of DreamWorks Consumer Products.

"Activision has a strong commitment to making great games, and has worked

hand in hand with our animation teams to expand the Shrek universe into a

broad world of terrific interactive adventures. We're excited about the

future titles for Shrek, as well as upcoming new releases planned for

Madagascar and Over the Hedge."